The Bank Board Bureau (BBB) on Saturday recommended the names of Ashwini Bhatia, MV Rao and PP Sengupta respectively for the post of managing director of three state-owned lenders – State Bank of India, Central Bank of India and Indian Overseas Bank. Of.
Bhatia is currently serving as Deputy Managing Director (DMD) at SBI, while Rao is the Executive Director at Canara Bank.
The official statement said that the members of the bureau intervened on 20 May with 20 candidates from nationalized banks for the position of managing director of State Bank of India and MD and CEO of Indian Overseas Bank and Central Bank of India. Bhatia will be appointed in place of PK Gupta who was superannuated on 31 March, while Rao will replace Pallav Mahapatra, MD of Central Bank of India who retires in February next year.
Sengupta, currently DMD SBI, will replace Karnam Sekar, MD and CEO of Indian Overseas Bank, who retires on June 30. With this exercise, the government has completed the process of appointing the head of PSU banks for the current financial year.
The decision on the appointment will be taken by the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi. The BBB is headed by BP Sharma, former personnel and training secretary, head of state-owned banks and financial institutions.
In 2016, the Prime Minister approved the formation of the BBB as a body of eminent professionals and officials, who make recommendations for the appointment of full-time directors as well as non-executive presidents (PSBs) of public sector banks.
It was tasked to engage with the board of directors of all PSBs to formulate appropriate strategies for their growth and development. In addition, it was asked to formulate a strategy discussion on consolidation on a need basis. The government wanted to encourage bank boards to restructure their business strategy and also suggest their consolidation and merger with other banks.